Scorpion Offshore Announces Private Placement

Scorpion Offshore

Scorpion Offshore Ltd. will seek to place up to 3.5 million shares in a private placement after close of trade on Oslo Bors October 17, 2006. The purpose of the private placement is to finance the upgrading of Scorpion's first two rigs for international operations (high pressure and high temperature) and to complete the equity funding of Scorpion's fifth rig. The private placement will be directed at a limited group of professional investors and the minimum subscription will be the equivalent to Euro 50,000.

The offer price will be set at or near the closing price today. Fearnley Fonds ASA and First Securities ASA will act as managers of the private placement. Subscribed shares will be settled by existing shares subject to a share lending agreement entered into by the Managers with an existing shareholder. The new shares will be issued to the lender as settlement of the stock loan upon publication of a listing prospectus.